| Description | (Signed for Boulton & Smiths.) (3 ff)
Dear Sir,
I am now empowered to reply to your favour of the 2nd instant concerning your having a discretional power granted you for supplying the London merchants and riders.
In reply to your observation "that all I say in my last letter amounts to this-that we gain 2½ per cent. more by the goods sold through your hands than by those sold to the Birmingham factor," I think it is necessary to repeat that the difference, whatever it may be, was the result of previous consideration, and we see yet no reason to alter our opinion when we reflect that the London trade we have hitherto carried on is merely retail, and that it is us, and not you, who run the risk of bad debts.
We do not conceive that the sale of our latchets will be ultimately much augmented by means of the London riders, as there is at present scarcely a town in England, Wales, or Scotland where they have not been carried by our Birmingham factors. We know too that some of the London riders take this article with them for the mere purpose of decrying it and bringing it into disrepute; you should therefore be very cautious into whose hands you confide our latchets, as you may otherwise do us a material injury. Upon the whole, we consider that any allowance granted to the London riders will only enable our left hand to rival our right, and will be taking the business from persons we know, to give it to others whom we do not know.
We consider the supplying of the London foreign and wholesale merchants as a point of much more serious importance, and although our original intention was merely to supply the retailer through your hands, we are not unwilling to profit by the opportunity, which you say offers, of running off a considerable quantity among the former. We will therefore execute your orders for them upon the same terms as we now supply the Birmingham factors-that is, 5 per cent. discount and 7½ for ready money, or payment at the end of the quarter; but we understand that this allowance is to comprehend your commission, which we do not think ought to exceed 2½ per cent. upon orders of this kind, as they are both procured and attended with much less trouble than those of the retail dealers. By this means you will be enabled to allow the wholesale dealers 5 per cent. discount and 5 per cent. for ready money, and we shall then be the carriage to London out of pocket when compared with the Birmingham factors. You may make the same allowance to such of the London riders as you know from experience to be reputable dealers, upon which head we shall confide entirely in your known prudence.
Opportunities may sometimes offer of selling to captains of ships, foreigners, and other persons whom we are unacquainted with, in which case we shall expect you to guarantee them, and will then allow you 2½ per cent. extra, say 5 per cent. discount and 10 per cent. for your immediate remittance.
As to what you observe respecting the allowances made by the Plated Company to wholesale dealers who apply directly to the Manufactory, I find upon enquiry that it is very different from what you state.
Neither Mr. Goldsmith nor Mr. Wennington are furnished by us and, from what we learn, they are supplied with but very few by our Birmingham factors.
I am desired to notice an expression in your letter of the 10th instant, in which you say that you have just received two boxes of latchets, not one of which patterns were wanted, except 344; upon enquiring into this affair we find that not one pattern was sent but in consequence of your written orders. It would be better if you were to be uniform in your orders and not play at fast and loose, as we might then be exact and punctual in fulfilling them.
We are now preparing some new articles from which we have great expectations, and we hope they will serve as a spur to your zeal and energy, as the result is for your interest as well as ours. I remain respectfully, dear sir, yours sincerely, for Boulton & Smith,
Jas. Watt Junr.
[Edited transcript.] |